NCERT Solutions Class 10th Social Economics Chapter – 2 Sectors of Indian Economy Question & Answer

June 8, 2022

NCERT Solutions Class 10th Social Science Economics Chapter – 2 Sectors of Indian Economy

Text Book	NCERT
Class	10th
Subject	Economics
Chapter	2
Chapter Name	Sectors of Indian Economy
Category	Class 10th Social Science Economic
Medium	English
Source	Last Doubt

NCERT Solutions Class 10th Social Science Economics Chapter – 2 Sectors of Indian Economy

Chapter – 2

Sectors of Indian Economy

Question & Answer

Page 35

1. Fill in the blanks using the correct option given in the bracket:
(i) Employment in the service sector increased to the same extent as production. (has / has not)
(ii) Workers in the sector do not produce goods. (tertiary / agricultural)
(iii) Most of the workers in the sector enjoy job security. (organised / unorganised)
(iv) A proportion of labourers in India are working in the unorganised sector. (large / small)
(v) Cotton is a product and cloth is a product. (natural / manufactured)
(vi) The activities in primary, secondary and tertiary sectors are _. (independent / interdependent)
Ans –
(i) Employment in the service sector has not increased to the same extent as production.
(ii) Workers in the tertiary sector do not produce goods.
(iii) Most of the workers in the organised sector enjoy job security.
(iv) A large proportion of labourers in India are working in the unorganised sector.
(v) Cotton is a natural product and cloth is a manufactured product.
(vi) The activities in primary, secondary and tertiary sectors are interdependent.

2. Choose the most appropriate answer.
(a) The sectors are classified into public and private sector on the basis of:

(i) employment conditions
(ii) the nature of economic activity
(iii) ownership of enterprises
(iv) number of workers employed in the enterprise

(b) Production of a commodity, mostly through the natural process, is an activity in _____ sector.

(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology

(c) GDP is the total value of _ produced during a particular year.

(i) all goods and services
(ii) all final goods and services
(iii) all intermediate goods and services
(iv) all intermediate and final goods and services

(d) In terms of GDP the share of tertiary sector in 2003 is _

(i) between 20 per cent to 30 per cent
(ii) between 30 per cent to 40 per cent
(iii) between 50 per cent to 60 per cent
(iv) 70 per cent

Answer –

(a) (iii)
(b) (i)
(c) (ii)
(d) (iii)

3. Match the following:

Problems faced by farming sector	Some possible measures
Unirrigated land	(a) Setting up agro-based mills
Low prices for crops	(b) Cooperative marketing societies
Debt burden	(c) Procurement of food grains by government
No job in the off season	(d) Construction of canals by the government
Compelled to sell their grains to the local traders soon after harvest	(e) Banks to provide credit with low interest

Answer –

Problems faced by farming sector	Some possible measures
1. Unirrigated land	(d) Construction of canals by the government
2. Low prices for crops	(c) Procurement of food grains by government
3. Debt burden	(e) Banks to provide credit with low interest
4. No job in the off season	(a) Setting up agro-based mills
5. Compelled to sell their grains to the local traders soon after harvest	(b) Cooperative marketing societies

4. Find the odd one out and say why.
Answer –

• Tourist guide, dhobi, tailor, potter.
• Teacher, doctor, vegetable vendor, lawyer.
• Postman, cobbler, soldier, police constable.
• MTNL, Indian Railways, Air India, Sahara Airlines, All India Radio.
• Potter, because only the potter relates to the secondary sector.
• Vegetable vendor, since only this directly helps in the production of goods.
• Cobbler because the only cobbler falls in the private sector.
• Sahara Airlines, as this is only a private sector company in the group.

5. A research scholar looked at the working people in the city of Surat and found the following.

Place of work	Nature of employment	Percentage of working people
In offices and factories registered with the government	Organised	15
Own shops, office, clinics in marketplaces with formal license	——-	15
People working on the street, construction workers, domestic workers	——-	20
Working in small workshops usually not registered with the government	——-

Answer –

Place of work	Nature of employment	Percentage of working people
In offices and factories registered with the government	Organised	15
Own shops, office, clinics in marketplaces with formal license	Organised	15
People working on the street, construction workers, domestic workers	Unorganised	20
Working in small workshops usually not registered with the government	Unorganised	50

6. Do you think the classification of economic activities into primary, tertiary, and secondary is useful? Explain how.
Answer – The classification of economic activities into primary, secondary, and tertiary sectors is helpful as mentioned below –

• It provides information on how and where the people of a country are employed. For example in India in 2000, the share of the primary sector in employment was about 60 percent e., more than other sectors.
• It also helps in ascertaining as to which sector of economic activity contributes more or less to the country’s GDP and per capita income.
• If the tertiary sector is developing much faster than the primary sector, then it implies that agriculture is depleting and the government must take measures to rectify this.
• The knowledge that the agricultural profession is becoming unpopular or regressive can only come if we know which sector it belongs to.
• It provides us information about employment conditions in different sectors. For example in India, the primary sector faces the problem of disguised unemployment. In this sector, more people are employed and even if some are removed, production will not be affected.
• It provides us the information about progress in different sectors. For example, the importance of the tertiary sector has increased due to various factors need for basic services and the coming of IT services.
• In view of the above factors, it is necessary to classify economic activities into three sectors for smooth economic administration and development.

7. For each of the following sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
Answer – (1) For each of the sectors we focus on employment and GDP due to the reasons mentioned below :

• To know the number of people employed in that sector. For example in 2000, the share of the primary sector in employment was more than secondary and tertiary sectors.
• To know the share of each sector in the GDP. For example in 2000, the share of the tertiary sector was more than that of the agriculture sector and secondary sector in the GDP.
• By focusing on GDP and employment we can draw conclusions regarding the generation of new employment opportunities in various sectors and take necessary steps accordingly.
• We come to know employment conditions for workers such as in the unorganized sector and take necessary steps to improve their condition. So that the workers are not exploited.

(2) Focus should be laid on other issues such as conditions of work, profit motive, efficiency, public welfare, environmentally friendly.

• Conditions of work should be in the favour of workers.
• The employment should be regular and the employer should follow various laws such as Factories Act, Minimum Wages Act etc.
• The production must be for the welfare of the people who should not be exploited by raising prices or creating a scarcity of goods in the market. Thus, such issues must be examined while discussing the role of different sectors in the economy of the country.

8. Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.
Answer –

1. A farmer laboring in his field, a dairy owner selling milk and dairy products, and a fisherman selling fish are all examples of the primary sector.
2. Foreman and engineers working in factories are examples of the secondary sector.
3. Chartered accountants, transporters, bankers, teachers, etc. are all employed in the tertiary sector.

9. How is the tertiary sector different from other sectors? Illustrate with few examples.
Answer – The tertiary sector is different from other sectors as mentioned below –

1. The activities of the tertiary sector help in the development of primary and secondary sectors.
2. These activities, by themselves, do not produce a good, but they are an aid or support for the production process. For example, the transport system helps in taking goods from the factory to markets for the purpose of selling or storing in godowns.
3. It provides telephones and other products for communication to the traders. Banks provide money to help production and trade.
4. Thus transport, storage, communication etc. are not tertiary activities. On the other hand, primary sector forms the base for all products that we subsequently make. Minerals and ores are natural products which are converted into other forms by manufacturing. Sugar is made from sugarcane.

10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer – Disguised Unemployment is a kind of unemployment in which there are people who are visibly employed but are actually unemployed. This situation is also known as Hidden Unemployment. In such a situation more people are engaged in a work than required.

• For example in rural areas, this type of unemployment is generally found in the agricultural sector like – in a family of 9 people all are engaged in the same agricultural plot. But if 4 people are withdrawn from it there will be no reduction in output. So, these 4 people are actually disguisedly employed.
• In urban areas, this type of unemployment can be seen mostly in service sectors such as in a family all members are engaged in one petty shop or a small business which can be managed by less number of persons.

11. Distinguish between open unemployment and disguised unemployment.
Answer – Open Unemployment – When a country’s labour force do not get opportunities fro adequate employment, this situation is called open unemployment. This type of unemployment is generally found in the industrial sector of our country. This is also found among the landless agricultural labourers in rural areas.

Disguised Unemployment – This is a kind of unemployment in which there are people who are visibly employed but actually they don’t have full employment. In such a situation more people are engaged in a work than required. This type of unemployment is generally found in unorganized sector where either work is not constantly available or too many people are employed for the same work that does not require so many hands.

12. Tertiary sector is not playing any significant role in the development of Indian economy. Do you agree/ Give reasons in support of your answer?
Answer – “The tertiary sector is not playing any significant role in the development of Indian economy” is partially correct due to reasons as mentioned below :

1. The share of tertiary sector in employment has not increased in proportion to its increase in production. In 2000, the production in service sector rose by 11 times, whereas employment has risen less than three times. Therefore, still more than half of the workers in the country are working in the primary sector.

2. New services such as based on information technology have become important, but not all the services of the service sector are growing well. At one end are highly skilled and educated workers but on the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair Arsons, transport persons.

2.1 These persons barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them. Such persons can not play any important role in the development of the Indian economy. It is this part of service sector that is not growing in importance.

13. Service sector in India employs two different kinds of people. Who are these?
Answer – The service sector in India employs the following two different kinds of people. They are:

(a) The people involved in the services that may directly help in the production of goods. For example, people involved in the transportation, storage, communication, finance etc.
(b) The people involved in such services that may not directly help in the production of goods e.g. teachers, doctors, barbers, cobblers lawyers etc. They may be termed as ancillary workers means those who give services to the primary service providers.

14. Workers are exploited in the unorganized sector. Do you agree with this view.? Give reasons in support of your answer.
Answer – Yes, workers are exploited in the unorganized sector. This would be clear from the following points:

1. There is no fixed number of working hours. The workers normally work 10 – 12 hours without paid overtime.
2. They do not get other allowances apart fro the daily wages.
3. Government rules and regulations to protect the labourers are not followed there.
4. There is no job security.
5. Jobs are low paid the workers in this sector are generally illiterate, ignorant and unorganized. So they are not in a position to bargain or secure good wages.
6. Being very poor they are always heavily in debt. So, they can be easily made to accept lower wages.

15. How are the activities in the economy classified on the basis of employment conditions?
Answer – On the basis of employment conditions, the activities in the economy are classified into organized and unorganized sectors.

• Organized Sector This sector covers those enterprises which are registered by the government and have to follow its rules and regulations. For example, Reliance Industries Ltd., GAIL etc.
• Unorganized Sector It includes those small and scattered units which are largely outside the control of the government. Though there are rules and regulations but these are never followed here. For example, casual workers in construction, shops etc. In this sector there is no job security and the conditions of employment are also very tough.

16. Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer – The employment conditions prevailing in the organised and unorganised sectors are vastly different. The organised sector has companies registered with the government and hence, it offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work. On the other hand, the unorganised sector is a host of opposites. There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of safe work environment.

17. Explain the objective of implementing the NREGA 2005.
Answer –

1. The objective of implementing the NREGA 2005 i.e., National Rural Employment Guarantee Act 2005 is to implement the right to work.
2. The Act has to be implemented in 200 districts.
3. Under this Act, all those who are able to, and are in need of work have been guaranteed 100 days of employment in a year by the government.
4. If the government fails in its duty to provide employment, it will give unemployment allowance to the people.
5. The types of work that would in future help to increase the production from land will be given preference under this Act.

18. Using examples from your area compare and contrast the activities and functions of private and public sectors.
Answer – The activities and functions of private and public sectors in our area may be compared as mentioned below :

Private Sector	Public Sector
(1) The vegetable shops, grocery shops, sweet shops etc. are in private sector.	(1) Mother Dairy booths which sell vegetables, fruits, milk and milk products are in public sector.
(2) These are owned by private individuals.	(2) These are owned by public sector undertaking ‘Mother Dairy’
(3) Vegetables and other products are generally of good quality.	(3) The vegetables and fruits are generally of average or poor quality.
(4) The rates may be slightly higher	(4) The rates are lower than the market rates.
(5) The companies like Reliance, Tata, Airtel provide telephone and TV services which are of very good standard.	(5) MTNL provides telephone services. There are complaints against their services. On many occasions, telephones remain out of order, hut they do not charge for that period.
(6) The shopkeepers provide free home delivery service without any extra-charge.	(6) Mother Dairy or any other public under taking do not provide free home delivery service.
(7) Private schools provide education of good quality. Their students are well-dressed and disciplined. Their medium of in structions is always English.	(7) The schools run by MCD do not provide quality education. Their students are not well-dressed and disciplined. Their medium of instructions is generally Hindi.

19. Discuss and fill the following table giving one example each from your area.
Answer –

	Well managed Organisation	Badly managed Organisation
Public Sector
Private Sector

	Well managed Organisation	Badly managed Organisation
Public Sector	Delhi Metro Rail Corporation	Air India
Private Sector	Reliance Mobile	Satyam

20. Give three examples of Public Sector activities and explain why the government has taken up them.
Answer – The examples are:
Railways The government has taken up it for the following reasons –

1. Only the government can invest large sums of money on the public project with long gestation period.
2. To ensure and provide transportation at cheap rate.

NTPC – The government has taken up it to provide electricity at a lower rate than the actual cost of production. The aim is to protect and encourage the private sector especially small scale industries.
AIIMS – To provide quality health services at reasonably cheap rate was the main purpose of the government to start this.

21. Explain how Public sector contributes to the economic development of a nation.
Answer – In the following ways Public sector contributes to the economic development of a nation:

1. It promotes rapid economic development through creation and expansion of infrastructure.
2. It creates employment opportunities.
3. It generates financial resources for development.
4. It is ensuring equality of income, wealth and thus, a balanced regional development.
5. It encourages development of small, medium and cottage industries.
6. It ensures easy availability of goods at moderate rates.
7. Contributes to community development i.e. to the Human Development Index (HDI) via health and educational services.

22. The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples?
Answer – The workers in the unorganised sector need protection on the following issues: wages, safety and health. In the construction sector, labourers are employed on a daily basis. Hence, they have no job security. Here, wages too differ from time to time. Consequently, the government has set up a minimum wages act to protect such workers from economic exploitation.

• The same problem exists for miners working in private mining companies. Their safety is secondary to the company’s profits, and as a result, many miners suffer grievous injuries (and many a times, even die) due to inadequate safety gear and norms. Governments of most nations have now laid down strict rules for private enterprises to ensure workers’ safety.
• Most companies in the unorganised sector do not provide health insurance to their employees. Some of these might be involved in dangerous factory production that may harm a worker’s health in the long term. These workers need to be protected against the tyranny of the employer, and it is here that the government steps in.

23. A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?
Answer – Ways to generate more employment in the city of Ahmedabad have to be provided by the government, especially in the unorganised sector. As the table shows, the organised sector’s earnings are much higher than that of the unorganised sector even though the latter employs almost 80% of the city workers. More companies need to be brought under the roof of the organised sector so that workers from the unorganised sector are attracted to jobs there, with higher and more secure wages. For this, the government must provide loans and aid to companies transferring from unorganised to organised sectors.

24. The following table gives the GDP in Rupees (Crores) by the three sectors:

year	Primary	Secondary	Tertiary
2000	52,000	48,500	1,33,500
2013	8,00,500	10,74,000	38,68,00

(i) Calculate the share of the three sectors in GDP for 2000 and 2013.
(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.
(iii) What conclusions can we draw from the bar graph?
Answer – (i) primary sector = 22.22%
(ii) secondary sector = 20.73%
(iii) tertiary sector = 57.04%

NCERT Solution Class 10th Economics All Chapters Question Answer

Chapter – 1 Development

Chapter – 2 Sectors of Indian Economy

Chapter – 3 Money and Credit

Chapter – 4 Globalization and the Indian Economy

Chapter – 5 Consumer Rights

NCERT Solution Class 10th Economics All Chapters Notes

Chapter – 1 Development

Chapter – 2 Sectors of Indian Economy

Chapter – 3 Money and Credit

Chapter – 4 Globalization and the Indian Economy

Chapter – 5 Consumer Rights